All Forum Posts by: Mike Nichols

We are finishing our second rehab. We had a successful first BRRR. We currently have the house we are going to buy under contract for $120,000. We have put about $40,000 in repairs, new floors, new windows, siding, drywall, paint, bathroom etc. House is close to being a new house. Probably can sell it for $250,000. Rent in the area would probably bring $1,500/month. If we sell we would split the profits 50/50, if we rent it out, we would buy out our partner. Looks like about a 75% return on our money if we sell (after taxes). Monthly cash flow would be around $600/month. 11%CoC return.

When do you keep for residual income, when would you sell? 

We are looking at investing in some property in Lakeland, GA. Anyone invest in the area? What are your thoughts? We are looking at buy and hold single family or multi-family. 

Thanks

Thank you @Bryan Jenkins, we have them coming out Friday to take a look. I would like to get a second option/opinion as well. 

I am looking for a property manager for a recently rehabbed property in Richmond, VA. Any recommendations would be appreciated.

Mike

@Mark Fries That makes sense. Thanks for the tip. 

We won the auction. We are responsible for taxes from the date the auction was held. The court still has to approve the sale which will happen on December 6th. As long as the court agrees with our offer, the lawyer can file the deed. That is when we can take possession of the house. We are told we cannot start fixing it up until the deed is filed just in case something happens and we do not end up getting the property. If the house burns down gets struck by lightening or what ever between now and when it goes before the court we would still be liable to pay what we bid, there is no get out of bid clause. 

We called a couple insurance companies about our property we bought at the tax auction. We are not able to get coverage even though we Will be forced to buy it even if it burns down between now and when we get to take possession of the property. 

Anyone ever get some kind of policy that has done this kind of purchase before? 

Auction date was 10/13, court date to accept our bid is 12/6, expect deed to be filled 12/9 at which time we can enter the property and start to make repairs. We put 20% down right now, will pay the rest on 12/6 in the form of a certified check. Insurance companies state they won’t cover unless the property will be occupied within 30 days. So we will get some insurance on 11/ 9, just like something in place before if possible. 

Thanks

Mike

@Curt Davis According to the lawyer that is handling the cases, there is no redemption period.

We went to a real estate auction today and purchased our first rental property. The property goes before the court on December 6th, so we should be able to take possession on December 9th. It was a tax sale. We paid a little more than our "max" but still feel we should be ok as long as the interior is in Ok shape. Could not see in them with the blinds pulled. Unusual condition compared to most of the houses we have  been looking at, the blinds are real blinds and the doors and windows all work. We spoke with the neighbor of the property and he said the house was meticulously maintained when the grandmother lived there. Grandson left it and the taxes were delinquent. We plan to clean up the yard and get it ready to rent, get a tenant in it and look at re-financing. December could be a good surprise or a surprise. We will show up on December 9th with a locksmith to let us in our new house. 

@Nathan Gesner Thank you, it is  good start. I have been taking notes from some of the podcasts for some extras to have in the leases.